Challenges For Thise

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Question 1: Describe the challenges for Thise on the Chinese market and explain what kind of market research they should have conducted before entering the market. (10 %) The main challenges for Thise, when entering the Chinese market, has been the cultural differences in preferences, finding the right distributor and getting the permission to sell in china as an organic dairy producer. They are now in the market, however the challenge of cultural differences is still there. The Chinese are not interested in any of the Danish Thise products like fresh milk, cheese, skyr, etc. 60% of the Chinese are drinking UHT milk, so Thise has to be creative and produce new products for the Chinese market. One of the other challenges was, and could still…show more content…
Therefore they still focus on producing better and different products and consequently maintaining a competitive advantage. Even though, Thise “just” sell milk, Thise focuses on adding something extra as a result of only selling a particular market segment whose consumers are willing to pay a high price for high quality. The "something extra" and unique for Thise, is the fact that they sell Danish organic milk, as the first in China. Based on the above strategy used on the Chinese market, it is relevant to look a little more on the factors that determines whether a company can be successful in a market or not, namely if they know how to exploit the new trends that are in the market. There are several factors that come into play and that has to change if Thise be successful in the Chinese market for organic dairy products. Generally speaking, there are two factors that come into play when the customer needs are to be cov-ered. The first is necessary factors (NF) indicating the customers' minimum requirements for the prod-uct. The second factor is critical success factors, which creates the competitive advantage of the product and thus ascribe the product added
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